Our Strategies work regardless of market direction or economic conditions.

The sports apparel and footwear industry is a highly competitive industry given that smaller brands such as Under Armour Inc (NYSE:UAA) compete with global brands such as Adidas and Nike Inc (NYSE:NKE). Under Armour recently recorded declining sales in its main North American markets, which many analysts believe is due to the company’s unfocused branding strategy.

Many consumers seem to have an unclear idea as to what Under Armour stands for, due to the company’s lack of a focused marketing and branding strategy. The company announced its new turnaround strategy yesterday where it identified footwear as its main revenue generator into the future.

However, the company needs to do more in order to distinguish its brand from other brands in its two major markets, that its sports apparel and footwear categories. The company has identified several product categories including men and women’s training, basketball, running and lifestyle products.

Identifying product categories is just the first step in creating a highly recognizable brand that will attract new customers and increase customer loyalty to the brand. Global sportswear brands such as Nike not only market their products, but they also position their products as unique lifestyle brands.

Nike uses emotional branding to captivate its customer with a unique brand story where its customers are hooked by the hero’s journey. Nike Inc’s unique branding makes its customers feel as if they are on a unique hero’s journey by purchasing and wearing the company’s products.

Emotional branding that promotes the uniqueness of a company’s products is what is missing from Under Armour’s marketing efforts. Over the past year, Under Armour customers have been unable to identify what the brand truly stands for, which could be the main cause for the company’s declining sales.

Therefore, despite implementing a restructuring program, Under Armour should also find new ways of positioning its brand in order to capture the attention of its target customers.

Stock Traders Daily provides real time trading reports that allow you to understand where we think specific stocks are going to go in the future. Subscribing as a free trial member will grant you access to over 1300 real time stock trading reports.

Download Our Free UAA Stock Report

This report will tell you where to buy UAA, where to sell UAA, and where stop losses and profit stops should be implemented. Our real time trading report tells you where to buy and sell, it is current, based on the most recent price and corrresponding analysis, and that makes it immediately actionable.